Newrez (Formerly Caliber Home Loans) Mortgage Review 2024
Ratings and reviews are from real consumers who have used the lending partner’s services.
Ratings and reviews are from real consumers who have used the lending partner’s services.
500
0% to 3.5%
Conventional, FHA, VA, home equity loans, investment-property loans
See how we reached our verdict below.
- 45-day Lock & Shop program lets you lock in a rate while you shop for a home
- Available in all 50 states, plus Washington, D.C.; Guam; Puerto Rico; and the U.S. Virgin Islands
- High approval rate
- Doesn't disclose rates, qualification requirements or other key information about its loans
- No USDA loans
- Extremely poor customer reviews
Newrez mortgage overview
Caliber Home Loans was acquired by New Residential Investment Corp., the parent company of Newrez, in 2021. All existing Caliber Home Loans are now serviced by Newrez, and new loans are acquired and serviced through Newrez. Newrez is headquartered in Fort Washington, Pa.
- Areas of service: Newrez is licensed in all 50 states as well as the District of Columbia, Guam, Puerto Rico and the U.S. Virgin Islands.
- Digital service: Newrez specializes in digital loans.
- Headquarters: 601 Office Center Drive, Suite 100, Fort Washington, PA 19034
- Website: CaliberHomeLoans.com and Newrez.com
Newrez Loans rates, terms and fees
Rates
Newrez doesn’t publish its rates. However, based on Home Mortgage Disclosure Act (HMDA) data, the average rate for a Newrez loan in 2023 was 6.46%. Its average rate spread that year was 0.45%, which is the difference between the average prime offer rate (APOR) and the average annual percentage rate (APR) Newrez offered to mortgage customers in that year. (The higher the average rate spread, the more expensive the loan.) Newrez’s rate spread is on the lower end compared to the average rate spreads of similar mortgage lenders, which range from -0.22% to 4.29%, with an average of 0.77%.
In 2022, Newrez’s average interest rate was 4.68% with a spread rate of 0.65%.
Fees
Newrez lists some of its fees online, including late fees and appraisal fees, but it doesn’t provide total loan costs or origination fees. Based on HMDA data, however, we know Newrez charged average origination fees in 2023 of $3,474, which is just below the average of other similar lenders we evaluated whose average origination fees range from $771 to $7,555. Newrez’s average total loan cost was $7,939, which is just above average compared to the average total loan cost of other similar lenders, which range from $2,403 to $12,234.
What discounts does Newrez offer?
Newrez offers a couple of discount programs. The Newrez Home Rewards program offers buyers a credit at closing equal to 0.5% of the home’s sales price. It also offers sellers a 1% reduction in commission fees if they use an agent in the Newzip network. Newrez also offers $1,000 toward closing costs.
Newrez’s Lock & Shop program lets borrowers lock in a rate for 45 days while they search for a new home. If that rate goes down, you can lock in at the lower rate at no cost.
What types of mortgage loans does Newrez offer?
Newrez offers a variety of home loans including:
Conventional loans
Newrez offers a variety of conventional loans, including fixed-rate and adjustable-rate mortgages (ARMs). Unfortunately, it does not provide upfront information on the requirements for these loans.
FHA loans
Newrez offers FHA loans, insured by the Federal Housing Administration (FHA), which have less stringent qualification requirements than conventional loans.
FHA loan qualification requirements
- Maximum 43% debt-to-income (DTI) ratio
- Minimum 500 credit score
- Minimum 3.5% down payment
- Steady income
- Proof of employment history
- No derogatory credit event in previous two to three years
VA loans
Newrez offers mortgages backed by the U.S. Department of Affairs, known as VA loans, to eligible servicemembers and veterans and their spouses. These loans have less stringent qualification requirements than conventional loans and come with significant benefits, including no down payment and lower interest rates and closing costs.
VA loan qualification requirements
- No down payment required
- Must meet military service requirements or be a qualifying spouse
- Maximum 41% DTI ratio
- No private mortgage insurance required
Home equity loans
Newrez offers home equity loans of up to $350,000.
Home equity loan qualification requirements
- Maximum 80% loan-to-value (LTV) ratio
Newrez mortgage qualifications
| Credit score minimum | 500 for FHA loans; Not disclosed for other loan types |
| DTI ratio Debt-to-income (DTI) ratio compares your monthly gross income to your monthly debt payments. maximum | Conventional: Not disclosed FHA: 43% VA: 41% |
| Down payment minimum | Conventional: Not disclosed FHA: 3.5% VA: 0% |
Don’t know your credit score? Get your free score on LendingTree Spring today.
How to boost your loan approval odds
Newrez doesn’t disclose how it decides on acceptance or rejection of loan applications. However, 2023 HMDA data shows that Newrez-approved applicants had an average loan-to-value (LTV) ratio of 85.4% that year. Nearly 40% had a DTI higher than 43%.
Overall, Newrez accepted 94.5% of loan applications, leaving just 5.5% rejected. This is much lower than the average among other large-volume lenders, which typically have denial rates from the low-teens to mid-30s.
How to apply for a Newrez mortgage
1. Choose your loan type
Newrez provides general overviews for each of the types of loans it offers but publishes few specifics on eligibility requirements or rates. Your best bet is to call customer service if you have questions about Newrez’s loan offerings before applying.
2. Get prequalified
You can apply for prequalification through Newrez by calling 888-556-9979, or you can start the process online. This will give you a general estimate of the size of mortgage you’ll likely qualify for and the accompanying rates.
3. Submit a loan application
To start a loan application, the steps are the same as for prequalification. You must fill out a form online or call 888-556-9979. For home equity loans, however, the number to call is 833-919-3485. If you prefer to connect with a specific advisor, you can search for Newrez loan advisors online by state or location of the property in which you’re interested.
Documents you’ll need for prequalification or preapproval
- Identification
- Tax documents
- Bank statement
- Pay stubs
- Debt and asset statements
- Gift letters (if you’re using gifted funds)
Find out more about how to apply for a home loan.Is it safe to get prequalified with Newrez?
Yes, it’s safe to get prequalified and preapproved with Newrez. Preapproval (an additional step when you find a property you want to purchase) will require a hard credit inquiry. But it will likely only minimally impact your credit score, especially if you generally have a strong credit history.
Newrez’s customer service experience
Those interested in securing a loan through Newrez can start the process online by answering a few questions. You can also fill out a form online for a representative to contact you, or reach out directly via phone.
- Phone: 888-556-9979
If you prefer to connect with someone in your area or near a property you’re interested in, you can search online for Newrez loan advisors across the country. Newrez offers no online chat function, nor are hours listed for when representatives are available. No email address for support is listed, either.
How does Newrez compare to other lenders?
|  |  |
|
| LendingTree’s rating | |||
| Minimum credit score | 500 for FHA loans; Not disclosed for other loan types | 500 to 680 | 580 to 620 |
| Minimum down payment | 0% to 3.5% | 0% to 3.5% | 0% to 3.5% |
| Rate spread Rate spread is the difference between the average prime offer rate (APOR) — the lowest APR a bank is likely to offer any private customer — and the average annual percentage rate (APR) the Caliber Home Loans offered to mortgage customers in 2023. The higher the number, the more expensive the loan. | 0.45% | 3.45% | 0.97% |
| Loan products and programs |
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| Better for: | Newrez may be a good option for those who want to secure a mortgage or home equity loan online, especially those with a higher DTI. | CashCall Mortgage loans are good for those who are self-employed or need alternative means of qualification. | Pennymac is a strong option for those who want a simple, online loan process for a traditional or government-backed loan. |
Newrez vs. CashCall Mortgage
Newrez and CashCall Mortgage both provide online mortgage products, but there are some differences. Both offer traditional loans, but CashCall also offers alternative loans for those who are self-employed or those who need alternative means of qualification, whereas Newrez doesn’t. Newrez offers home equity loans, while CashCall only offers home equity lines of credit (HELOCs).
CashCall’s rate spread is significantly higher than Newrez’s (3.45% versus 0.45%, respectively), making CashCall loans more expensive on average than Newrez loans. However, CashCall gets more positive online reviews from customers, while Newrez receives primarily negative online customer reviews.
→ Read more in our full CashCall Mortgage review.
Newrez vs. Pennymac
Newrez and Pennymac both offer a variety of mortgage products, with some key differences. For example, Pennymac offers USDA loans and jumbo loans. Newrez provides neither.
Pennymac’s rate spread is more than twice that of Newrez (0.97% versus 0.45%, respectively), making Pennymac loans more expensive on average than Newrez. However, Pennymac receives largely positive reviews from customers, whereas Newrez receives overwhelmingly negative ones.
→ Read more in our full Pennymac mortgage review.
Ready to compare lender offers on LendingTree? Get Your Rates TodayHow LendingTree rated Newrez
LendingTree’s mortgage lender rating is based on a five-point scoring system that factors in several features, including digital application processes, available loan products and the accessibility of product and lending information.
LendingTree’s editorial team calculates each rating based on a review of information available on the lender’s website. Lenders receive a half-point on the “offers standard mortgage products” criterion if they offer only two of the three standard loan programs (conventional, FHA and VA). In some cases, additional information was provided by a lender representative.
Newrez’s scorecard:
Publishes rates online
Offers standard mortgage products
Includes detailed product info online
Shares resources about mortgage lending
Provides an online application
= 0 points = 0.5 points = 1 point
Frequently asked questions
Newrez only provides general information about its products online. Rates and qualification requirements aren’t disclosed. You can get prequalified and start the application process online.
Yes, Newrez is a legitimate lender. They have been in business for 28 years and have an A+ rating with the Better Business Bureau (BBB). Their customer satisfaction rating on the BBB website, however, is very low — 1.18 out of 5 stars, with more than 700 customer reviews.
You can view more info about Newrez’s state licenses and registrations through the Nationwide Multistate Licensing System and Registry (NMLS) website.
All home loans affect your credit score to some degree, but not significantly; taking out a mortgage typically reduces a credit score by less than 20 points on average. Also, scores typically return to their previous level within a year.
Customer satisfaction among Newrez borrowers is extremely low. On TrustPilot Newrez gets just 1.1 out of 5 stars, with more than 250 reviews, earning them a “bad” rating.
Complaints range from extremely poor customer service to issues with the website. Customers cite costly mistakes Newrez has made, and many caution anyone thinking about taking out a loan from this company to choose a different lender.
There have also been more than 860 complaints filed against Newrez with the Consumer Financial Protection Bureau (CFPB). Many reference Shellpoint Partners, a company with a mortgage servicing arm that Newrez acquired in 2018. Reviewers report frustrating communication issues and trouble during the payment process, including costly errors customers say the company made.